Themis Medicare Ltd Falls to 52-Week Low of Rs.77.15 Amid Continued Downtrend

Stock Price Movement and Market Context

The stock opened with a gap down of -2.71% and continued to slide throughout the trading session, touching an intraday low of Rs.77.15, which represents its lowest level in the past year. Over the last two trading days, Themis Medicare has declined by -3.81%, underperforming its Pharmaceuticals & Biotechnology sector by -1.28% today. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

In contrast, the broader market showed resilience with the Sensex recovering from an initial negative opening of -100.91 points to close higher by 0.24% at 81,735.78. Despite this positive market backdrop, Themis Medicare’s shares continued to face selling pressure, highlighting company-specific challenges.

Long-Term Performance and Valuation Concerns

Over the past year, Themis Medicare’s stock has delivered a return of -66.34%, significantly lagging behind the Sensex’s 8.45% gain during the same period. The stock’s 52-week high was Rs.255, underscoring the steep decline it has experienced. This underperformance extends beyond the last year, with the company also trailing the BSE500 index over the last three years, one year, and three months.

The company’s Mojo Score currently stands at 17.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 1 February 2025. The Market Cap Grade is 3, reflecting its mid-tier market capitalisation within the sector. The stock’s valuation appears risky compared to its historical averages, with a notable deterioration in profitability metrics.

Financial Performance Highlights

Themis Medicare’s financial results have reflected a challenging environment. The company has reported negative results for four consecutive quarters. Its Profit Before Tax excluding other income (PBT LESS OI) for the latest quarter stood at Rs. -6.69 crores, representing a decline of -152.0% compared to the previous four-quarter average.

Net sales over the last six months amounted to Rs.175.57 crores, declining by -26.85%. Correspondingly, the Profit After Tax (PAT) for the same period was negative at Rs. -17.84 crores, also down by -26.85%. These figures highlight a contraction in revenue and profitability, contributing to the stock’s subdued performance.

Operating profit growth over the last five years has been negative at an annualised rate of -189.22%, indicating persistent difficulties in generating sustainable earnings growth. The company’s EBITDA is currently negative, which adds to concerns regarding its earnings quality and operational efficiency.

Debt and Risk Profile

Despite the financial headwinds, Themis Medicare maintains a relatively strong ability to service its debt, with a low Debt to EBITDA ratio of 0.86 times. This suggests that the company’s leverage is manageable in relation to its earnings before interest, taxes, depreciation, and amortisation, providing some cushion amid the earnings decline.

However, the stock’s risk profile remains elevated given the sharp fall in profits, with a -150.9% decrease in profitability over the past year. The absence of domestic mutual fund holdings further reflects a cautious stance from institutional investors, who typically conduct thorough research before committing capital.

Sector and Market Comparison

The Pharmaceuticals & Biotechnology sector has experienced mixed performance recently, with some indices such as NIFTY MEDIA and NIFTY REALTY also hitting new 52-week lows today. However, mega-cap stocks have led the broader market gains, supporting the Sensex’s positive close. Themis Medicare’s underperformance relative to both its sector and the broader market highlights company-specific factors influencing its share price trajectory.

The stock’s current trading below all major moving averages contrasts with the Sensex’s position, where the 50-day moving average remains above the 200-day moving average, indicating a more stable market trend overall.

Summary of Key Metrics

To summarise, Themis Medicare Ltd’s stock has declined to Rs.77.15, its lowest level in 52 weeks, reflecting a sustained downtrend. The company’s financial results show contraction in sales and profitability, with negative earnings over multiple quarters. Despite manageable debt levels, the stock’s valuation and risk profile remain elevated, with institutional investors notably absent from its shareholding pattern.

This performance contrasts with broader market resilience and sector dynamics, underscoring the challenges faced by Themis Medicare in the current environment.

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